Rates Increase Tough; Water Charging Needs to be Fairer
 
Tauranga Council’s planned rates increase of 4.6% will be tough for business to cope with, said the Employers and Manufacturers Association (EMA) in its oral submission today on Tauranga City Council’s draft Long Term Plan covering 2012-2021.
 
“But we applaud Tauranga’s efforts to keep rates increases down to the level of inflation plus 2%, this is still too high,” said EMA’s executive officer Peter Atkinson.
 
“We support the Government proposal to legislate for council rate increases to be no more than the rate of inflation and population increases; the current plan leaves too much leeway for rates increases,” he said.
 
“The best things about the proposed rates bill for 2012-2013 are that the council plans to maintain the Uniform Annual General Charge all ratepayers pay at the maximum allowable level of 30% of the total rates revenue, and not to introduce a business differential.
 
“We commend the Council on proposing a review of the property it owns and selling assets not providing a public benefit commensurate with their value, and in this context the airport would be a prime candidate for sale.
 
“Once a council has established a facility whose benefits are largely for individuals, or are private or optional rather than for the whole community like water and roads, the council should transfer ownership to private investors.
 
“The time has come to privatize or partly privatize the airport.
 
“Tauranga Council should also move to volumetric charging for wastewater this coming year,” Mr Atkinson said.
 
“The city’s water meters should make this easy. Charging for wastewater as a percentage of the volume of fresh water used is a fair user pays system and also encourages conservation.
 
“On debt the limit for Tauranga should be reduced to 200% of the council’s annual operating revenue, down from the current, excessive 250%, and it needs to make the reduction earlier than the planned 2016 year.
 
“Finally EMA congratulates Tauranga on having such an active, effective and inclusive Economic Development Agency, Priority One, which is a model for other councils”
 
Summary of points

·        Consider sale of Tauranga Airport over time.

·        Move to volumetric charging for wastewater.

·        Proposed rate increase of 4.6% is tough.

·        Reduce debt limit to 200% of annual operating revenue.

·        Bouquets for maintaining the capital value rating system, keeping the UAGC at the maximum and resisting the temptation to introduce a business differential in the rates invoice.

·        Council economic development agency, Priority One, is a model for other councils.

ENDS

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